Competition Policy and the Global Trading Regime Erlinda M. Medalla April 27-28, 2006 Hanoi

Why competition policy in the context of international trading regime?  The primary consideration should be national objectives, but it is crucial to also consider multilateral and regional perspectives.  Considering developments in other countries gives a wider perspective of the issues and helps governments decide on the most appropriate policies.

Why competition policy in the context of international trading regime?  National and regional efforts to enhance competition can be mutually reinforcing and provide a further force to counter the interests of vested groups.  There are trans-boundary anti- competitive acts.

Competition policy and international trade  Lack of domestic competition policy regulatory framework could affect market access, especially against foreign products Hence, competition policy as one of Singapore issues

Competition policy and international trade  There are cases where anti- competitive acts cross borders. Example: International shipping lines suspected to set up international cartels and allocate capacity  Need to address such cases at regional/ global level. Need for cooperative approach Possibly push the issue to be addressed at WTO

Developments in WTO  Competition policy issue has been dropped in the July package of the WTO  Proposals for competition policy agreements do not explicitly link competition policy with market access concerns; rather they aim to ensure that all countries have national legislation in place to deal with anticompetitive practices.  Cooperation between member states on competition policy are voluntary.  Agreement more towards commitment to competitive markets.